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CITY OF SAN BERNeRDINO - REQUEST re)R COUNCIL ACTION
From: Fred Wilson
Assistant City Administrator
Subject: Authorization for City to
participate in a pooled tax
and revenue anticipation note
(TRAN) financing program for
FY 95/96.
Dept:
Date: May 23. 1995
Synopsis of Previous Council action:
6/6/94 -- Resolution #94-131 adopted authorization participation
in FY 94/95 TRAN program.
Recommended motion:
Adopt resolution.
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Contact person:
Fred Wilson
Phone: 5123
Supporting data attached: yes
Ward:
FUNDING REOUIREMENTS:
Amount: Generates $104.000 in General Fund revenue.
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
'I' //. S
pc tj5-/77
75-0262
'15/95
Agenda Item NO.~
.
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This is the second year of the City participation in this TRAN
program. Last year the City earned $130,000 through this program.
The City Treasurer has reviewed this financing program and concurs
with the City's continued participation for FY 95/96
Leaque of California cities TRAN Pool
In January 1993, the California state Association of Counties and
the League of California cities joined together to develop a Pooled
Tax and Revenue Anticipation Note Program for California
communities. Sutro and Company was competitively selected to serve
as underwriter for this program. The advantages of participating
in this pool rather than an individual financing are many. There
are, for example, reduced issuance costs because expenses are
shared by all participants. There is also standardized
documentation and credit criteria employed in the financing as well
as a streamlined issuance process. Finally, there is the ability
to obtain a higher credit rating for the financing using the Joint
Powers Authority issuing structure.
The City's proposed TRAN will be a one year obligation dated July
1, 1995 and due on June 30, 1996. The City Treasurer has reviewed
this proposal and agrees in principle with this approach.
The attached resolution authorizes the issuance by the City of tax
and revenue anticipation notes (TRANs) in an approximate amount of
$8,000,000. The resolution also authorizes various financing
documentation including the attached purchase agreement. The
resolution further approves our participating in a joint powers
agreement and authorizes the City to become a member of the
California Statewide Community Development Authority.
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